The number of qualified investors in the US has grown to 24 million – Kommersant

At the end of 2022, the number of qualified investors (accredited investors) in the United States increased to 24 million, the TV channel reports CNBC citing data from the Securities and Exchange Commission (SEC). This represents 18.5% of the total number of households in the country. Back in 2019, their number was about 16 million (13%).

Qualified Investor Status in the USA allows Invest in securities that are not registered with the SEC, such as stocks, shares and units of private funds, hedge funds and venture capital funds. The main requirement for obtaining accredited investor status in the United States is to have an above-average wealth or income – for example, a wealth of $1 million (not counting the main real estate), or an annual income of $200 thousand on average over the last two years, or $300 thousand combined with your spouse’s income.

Unlike Europe, in the United States, to obtain the status of a qualified investor, for a long time there were no requirements for special qualifications or experience in conducting financial transactions. However, in August 2020, the SEC adopted amendmentswhich state that an individual or entity must pass certain tests or obtain a certificate to obtain status.

Experts attribute the sharp increase in the number of qualified investors in the United States to inflation and increased incomes in recent years. However, the wealth/income requirements for obtaining status in the United States have not changed since the 1980s. It is noted that in 1983, only 1.5 million households (1.8% of the total) met the income/wealth threshold in the country. Now this share has increased to almost 20%. Therefore, today some experts are calling for tightening the requirements for obtaining the status of qualified investors, for example, by increasing the minimum allowable amount of wealth/income, adjusting it in accordance with inflation. The measures are intended to reduce the risk of financial loss for the people themselves, who may not have the proper qualifications/experience for such investments.

“The total number (of people with the status of a qualified investor.— “Kommersant”) continues to grow all the time,” CNBC quotes Mika Hauptman, director of investment protection for the Consumer Federation of America. “If we do nothing, all current standards and requirements will simply become worthless.”

Where and how ruble billionaires invest – read in the Kommersant article “The Dashing Nine-Zeros”.

Evgeny Khvostik